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Innovation height, spillovers and TFP growth at the firm level: Evidence from French manufacturing

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  • DUGUET Emmanuel

    (EPEE - University of Evry)

Abstract

We examine the contribution of incremental and radical innovations to total factor productivity (TFP) growth at the firm level. The first part of our analysis is dedicated to the determinants of innovation and reveals two different innovation regimes. On the one hand, radical innovations rely strongly on firm-level spillovers, including property rights, and formal internal research while, on the other hand, incremental innovations rely mostly on the adoption of equipment goods accompanied by informal research. We find that radical innovations are the only significant contributors to TFP growth so that innovation height matters. We also find evidence that TFP growth is better represented by an upward shift of the production function than by a continuous innovation measure. Overall, the growth gains that we find are comparable to the ones of the previous studies.

Suggested Citation

  • DUGUET Emmanuel, 2004. "Innovation height, spillovers and TFP growth at the firm level: Evidence from French manufacturing," Development and Comp Systems 0411017, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpdc:0411017
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    growth; innovation; total factor productivity; Solow residual; spillovers;

    JEL classification:

    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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